New Regulations Are Coming. Are You Ready?

Starting this December, there will be new overtime rules that will make up to a third of employees eligible for overtime pay. Anyone making under the $47,476 salary threshold will be eligible for overtime pay for work over 40 hours.

While it has employees jumping for joy, it has many businesses scrambling to figure out how to best comply with the rules while not breaking the banks. Restaurants aren't excluded. The new regulations have been estimated it'll cost retail & restaurants more than $745 million.

And you can't ignore the changes, either. 

The Department of Labor has been aggressive about pursuing restaurants for wage-payment violations. You'll need to get into compliance or face big fines.

Getting Ahead of the Overtime Rule Changes is our restaurant-industry guide to help owners and operators navigate the change.

Find out what the new overtime rules mean for your business in our Under 60 Seconds video. See how other bars and restaurants are falling into compliance with our Consequences of Change infographic. Get five tips for jumping ahead of the changes, and figure out what your staff's effective hourly rate is with our real-world equation.

You get real tips. Real data. Real industry equations. So you can make the most informed decisions for your business.

Download the guide below as a PDF or view the individual items online below.

LEARN: How the New Overtime Rules Will Affect Restaurants

Big changes are coming to how overtime pay works in the US. Here's what bars & restaurants need to know about the Department of Labor's changes... in under a minute.

COMPARE: The Consequences of Change [INFOGRAPHIC]

What are restaurants like yours planning on attacking the new standards? We asked the subscribers of The Daily Rail & The SportsTV Guide how they plan on dealing with the new overtime rules. See the results.

ACT: 5 Steps to Get Ahead of the Overtime Rule Changes

Figuring out who should stay salary and who should be converted to hourly can be a pain. We walk you through the process, saving you some major headaches later.

EVALUATE: Determine Your Staff's Effective Hourly Rate [HACK #068]

The new overtime rules that were announced by the Department of Labor this past spring, have a lot of people in our industry scrambling for ways to make it all work. The first step is to determine the effective hourly rate (EHR) of your current managers. This is done using the simple formula below.

We have given you two examples of the calculation so you can see the net effect and determine your own response compared to these samples.

Weekly Salary / (40hrs + 1.5x Hrs Above 40) = Effective Hourly Rate


  • $35,000/year: ($673 / (40 +1.5(10)) = $12.23/hour EHR
  • $47,474/year: ($913 / (40 + 1.5(10)) = $16.60/hour EHR

Armed with the EHR for these pay levels, you can now determine if you convert a manager to hourly or increase them to the national exemption level of $47,476. Finding that balance will be tricky. The average restaurant manager salary in the 2015 was $41,387, so there is a significant difference between that and the exemption value. 

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